Oklahoma groups face Dec. 15 deadline for new federal education tax credit

Oklahoma public school groups must submit applications for a new federal education tax credit by Dec. 15. The U.S. Department of the Treasury issued only temporary rules for the program, which was written into law in 2025. April Grace, executive director of the Oklahoma Public School Resource Center, said the center is still waiting for exact guidance from federal officials. If the organization does not apply by the deadline, its donors will not be eligible for the tax benefit.

The federal credit allows taxpayers to receive up to $1,700 if they are single filers. Married couples can claim a credit of up to $3,400. Donations to qualifying organizations are matched dollar for dollar. The money goes toward private or public school tuition and other educational expenses. This structure is similar to Oklahoma’s state Equal Opportunity Education Scholarship program, but the federal rules differ in key ways. Businesses cannot participate in the new federal program, whereas they can in the state version.

Emily Haxton, a spokesperson for the Oklahoma Tax Commission, said the agency has not seen a surge in applications yet. The commission will provide a list of approved scholarship-granting organizations to the Treasury by Feb. 15. That list will allow taxpayers to select where to send their donations. Haxton noted that the state and federal programs require separate donations. IRS guidelines dictate that the state tax credit must be applied first if a donor does not maximize both credits.

Historically, state funds have flowed more heavily to private schools. In 2023 and 2024, the state awarded $4.7 million in credits for private school support and $1.2 million for public school support. Grace believes the new federal credit will help public schools attract new donors. She described the initiative as a tool for people focused on supporting the public system. She does not expect the new credit to shift the balance between private and public funding.

The temporary federal guidelines set limits on administrative overhead and define how funds can be used. They do not set a cap on the scholarship amount. The Treasury Department will accept feedback on these rules until Dec. 1. Grace said her organization already has a framework through its Catalyst program that resembles the new requirements. Her team is waiting for final details to adjust that framework. She noted that most contributors make these donations at year-end, so she does not anticipate a sudden rush of funding.

The Treasury Department estimates that by 2030, more than 11 million taxpayers will make qualified contributions. Those contributions are projected to total $26 billion annually. The program is open to U.S. residents and citizens. Students must live in households earning no more than 300% of the area's median gross income to qualify for scholarships. They must also be eligible to enroll in K-12 schools.